attAlongside AT&T's announcement of one million iPhone 4S activations today, the carrier also released its financial results for the third quarter of 2011. As Apple saw with customers holding off on iPhone purchases in anticipation of a new model, AT&T reported that it activated 2.7 million iPhones during the quarter, down from 3.6 million in each of the previous two quarters.

All told, AT&T sold 4.8 million smartphones during the quarter, and while AT&T's "activations" number is slightly different than its sales numbers due to the inclusion of previously-sold handsets being reactivated by new users, that difference is slight. As a result, the iPhone continues to represent more than half of AT&T's overall smartphone sales.

In the third quarter, the company sold 4.8 million smartphones, representing nearly two-thirds of postpaid device sales. Sales of Android devices more than doubled year over year, and almost half of all smartphone sales were non-iPhone devices. During the quarter, 2.7 million iPhones were activated.

AT&T notes that it has now passed 100 million subscribers and that its profit margins in wireless improved year-over-year, due in part to the lack of an iPhone launch just before or during the third quarter this year. AT&T's churn rate of customers leaving the carrier also decreased year-over-year, even for iPhone customers who had Verizon as a new iPhone option during this year's third quarter.

Overall, AT&T's revenues were down 0.3% compared to the year-ago quarter, with the carrier citing iPhone launch timing as one of the primary factors in that decrease.

Related Forum: iPhone

Top Rated Comments

DiamondMac Avatar
167 months ago


That's because AT&T is awesome!

AT&T ever plan on showing that awesomeness?
Score: 4 Votes (Like | Disagree)
Caliber26 Avatar
167 months ago
This really shouldn't come as a surprise to anyone. I mean, seriously, what other device out there would possibly outsell the iPhone?
Score: 3 Votes (Like | Disagree)
h0mi Avatar
167 months ago

All told, AT&T sold 4.8 million smartphones during the quarter, and while AT&T's "activations" number is slightly different than its sales numbers due to the inclusion of previously-sold handsets being reactivated by new users, that difference is slight. As a result, the iPhone continues to represent more than half of AT&T's overall smartphone sales.AT&T notes that it has now passed 100 million subscribers and that its profit margins in wireless improved year-over-year, due in part to the lack of an iPhone launch just before or during the third quarter this year. AT&T's churn rate of customers leaving the carrier also decreased year-over-year, even for iPhone customers who had Verizon as a new iPhone option during this year's third quarter.

This is also a good indication that while android has a larger marketshare (~35% to ~29% IIRC ... numbers are probably off a little) it's due in large part to having been available for so long on Verizon and Sprint while the iphone wasn't on either carrier until earlier this year & a week ago respectively.
Score: 2 Votes (Like | Disagree)
Caliber26 Avatar
167 months ago
I would have bought a 4s if I had an upgrade availible. I bought an iphone 4 last year but my upgrade date is feb 2012! I spend 250 bucks a month on out phones. Guess thats not enough. :confused:

That is interesting. I'm not sure what to say, then. I have a total of three lines and spend $180 every month (after my discount through my job). 700 min plan, unlimited texting + unlimited mobile-to-mobile, two lines with 2GB and one with 200MB. Granted, only my line was eligible for an upgrade this year even though two of my lines got iPhone-4 last year.

I'd call AT&T again and ask nicely about getting your date moved closer and point out what you're spending. They should at least do it for your main number.
Score: 2 Votes (Like | Disagree)
imotionb18 Avatar
167 months ago
I would have bought a 4s if I had an upgrade availible. I bought an iphone 4 last year but my upgrade date is feb 2012! I spend 250 bucks a month on out phones. Guess thats not enough. :confused:
Score: 2 Votes (Like | Disagree)
Caliber26 Avatar
167 months ago
Why is the real reason not being said why most are not upgrading.
ATT did not roll back upgrade dates. Most everyone that bought an iPhone 4 last year cannot but until Nov or later.

Yes ATT did let some upgrade early for some magically reason they cannot explain to me but many cannot.

I do not know many people that want to pay an extra 250 dollars, plus a 18 dollar fee on top of the 199, 299, or 399 price of the phone.

Wait a couple months and see how many sell with Apple, and I am sure Verizon also.

Discounted upgrades are offered to customers based on how much they spend on their wireless services. If you have the cheapest minute/text/data plans and are keeping your expenses to a minimum, then AT&T feels that they have not made enough money off of you, just yet, and will not give you another discounted device until they've made what they need to make, in order to recover the amount they subsidized when you got your phone for $199 (or $299, if you got the 32GB).

Basically, the more you spend, the sooner you're eligible for an upgrade. And this is also based on a per-line basis.
Score: 2 Votes (Like | Disagree)

Popular Stories

iPhone SE 4 Vertical Camera Feature

iPhone SE 4 Production Will Reportedly Begin Ramping Up in October

Tuesday July 23, 2024 2:00 pm PDT by
Following nearly two years of rumors about a fourth-generation iPhone SE, The Information today reported that Apple suppliers are finally planning to begin ramping up mass production of the device in October of this year. If accurate, that timeframe would mean that the next iPhone SE would not be announced alongside the iPhone 16 series in September, as expected. Instead, the report...
iPhone 17 Plus Feature

iPhone 17 Lineup Specs Detail Display Upgrade and New High-End Model

Monday July 22, 2024 4:33 am PDT by
Key details about the overall specifications of the iPhone 17 lineup have been shared by the leaker known as "Ice Universe," clarifying several important aspects of next year's devices. Reports in recent months have converged in agreement that Apple will discontinue the "Plus" iPhone model in 2025 while introducing an all-new iPhone 17 "Slim" model as an even more high-end option sitting...
Generic iPhone 17 Feature With Full Width Dynamic Island

Kuo: Ultra-Thin iPhone 17 to Feature A19 Chip, Single Rear Camera, Semi-Titanium Frame, and More

Wednesday July 24, 2024 9:06 am PDT by
Apple supply chain analyst Ming-Chi Kuo today shared alleged specifications for a new ultra-thin iPhone 17 model rumored to launch next year. Kuo expects the device to be equipped with a 6.6-inch display with a current-size Dynamic Island, a standard A19 chip rather than an A19 Pro chip, a single rear camera, and an Apple-designed 5G chip. He also expects the device to have a...
iPhone 16 Pro Sizes Feature

iPhone 16 Series Is Less Than Two Months Away: Everything We Know

Thursday July 25, 2024 5:43 am PDT by
Apple typically releases its new iPhone series around mid-September, which means we are about two months out from the launch of the iPhone 16. Like the iPhone 15 series, this year's lineup is expected to stick with four models – iPhone 16, iPhone 16 Plus, iPhone 16 Pro, and iPhone 16 Pro Max – although there are plenty of design differences and new features to take into account. To bring ...
icloud private relay outage

iCloud Private Relay Experiencing Outage

Thursday July 25, 2024 3:18 pm PDT by
Apple’s iCloud Private Relay service is down for some users, according to Apple’s System Status page. Apple says that the iCloud Private Relay service may be slow or unavailable. The outage started at 2:34 p.m. Eastern Time, but it does not appear to be affecting all iCloud users. Some impacted users are unable to browse the web without turning iCloud Private Relay off, while others are...